Although constructing a cryptocurrency mining facility is often seen as a simple task of providing housing for crypto mining gear such as application-specific integrated circuits (ASICs) or graphics processing units (GPUs), the process carries its fair share of complexity just as a traditional construction project.
Cryptocurrency mining and construction projects involve a project team, mini-projects, a supply chain, and require a nod from local authorities. Construction projects can either be public, private, or a combination of the two usually known as a public-private partnership. While most cryptocurrency mining projects are private constructions, countries like Russia have plans to build a public, state-backed cryptocurrency mining farm. Whether a public or private project, its magnitude changes depending on the projected outcome. The complexity is even higher for crypto mining projects when it involves building an in situ clean energy power source from water, biomass, wind, solar, geothermal, etc.
Below, we look at the similarities between cryptocurrency mining and construction projects.
Where it all begins: Concept, design, and permits
Every project begins at the concept phase where the client expresses interest in undertaking a construction project and seeks an architect to supply the designs. This is followed by seeking the necessary permits. The number and nature of permits are determined by local authorities. For example, some local authorities may demand to see the proposed building design, its health and safety impact report, its environmental impact report, and planning permission before allowing the commencement of the development.
The project team
Whether private/public, crypto mining, or traditional, a development must have a project team that brings the proposed construction to life.
Major players in construction include:
- Investors: These can be individuals or companies that are responsible for funding the project. Mostly, investors are paid back with proceeds from the development once it’s complete. Their funding can also be repaid by allocating them space in the construction. For crypto mining construction, this may involve allocating an investor space to house their own mining rigs while in conventional construction, investors can receive premium office space when the building is completed.
- Engineers and designers/architects: This group makes sure the building is both structurally healthy and it satisfies all regulatory guidelines.
- Electricians: Both cryptocurrency mining and construction projects need electricians ensure the final building has adequate and professionally-done electrical wiring. In a crypto mining construction, electricians may also be needed to be knowledgeable in wiring power from a renewable energy source such as hydroelectric, solar, and wind.
- IT gurus: While powering crypto mining rigs is key, a failure to effectively connect them to the blockchain over the internet makes the whole project a failure. These professionals ensure the rigs, mining software, and computer interfaces are adequately configured for optimal performance over the internet. IT gurus are also needed in conventional construction since inhabitants of modern developments see a reliable internet connection as a basic need even when a building has hundreds of occupants.
- HVAC professionals: These professionals ensure that a development is adequately air-conditioned. Although these professionals seem like they’re only needed in a cryptocurrency mining-based construction, they’re key members of a conventional project team since the development also needs professionally-done heating, ventilation, and air conditioning.
Supply chain
After the construction permits and the project team, the need for materials to work with opens the door for a robust supply chain.
The magnitude of the construction determines the complexity of the supply chain which may involve a hierarchy of supply contracts in both cryptocurrency mining and construction projects. The chain involves the supply of designs, the chain of suppliers, and sub-contractors working on different aspects of the development.
For example, in both constructions, there’s the main contractor who oversees that everything comes together as required, then there are sub-contractors who handle specific tasks such as electrical fittings, water piping, or ventilation. The same goes for suppliers; the one that supplies metal rods isn’t the one that delivers ASICs or avails cement, solar panels, roofing materials, etc.
Conclusion
From the above discussion, it’s evident that cryptocurrency mining and construction projects share the same roadmap; design, permits, project team, and supply chain. The only areas that a crypto mining development needs more attention than traditional construction are IT, HVAC, and electrical works.
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